FPA secures new PI service for members
The Financial Planning Association (FPA) has revealed the details of its new professional indemnity (PI) insurance service designed to take pressure off its members.
Last week a tender was awarded to Jardine Lloyd Thompson (JLT) to lead the new service, part of a tripartite relationship between the FPA, JLT and a panel of underwriters.
FPA GM of Professionalism Deen Sanders told insuranceNEWS.com.au the underwriters should be announced this week. He says the mix is likely to be three or four domestic insurers and some offshore.
He says a number of factors led to the decision to offer a PI policy to members, including ASIC’s Regulatory Guide 126: Compensation and insurance arrangements for AFS licensees, requiring all financial services licensees to have adequate PI insurance by July 1.
“We were absolutely swamped by members to offer this policy,” Mr Sanders said. “Most people don’t think about acquiring PI insurance because it is not a core part of their business.
“We have heard some horror stories about premiums that have doubled and about exclusions in their policies.”
Mr Sanders says he will be surprised if most FPA members do not join the scheme over the next two years.
“This policy is not about offering the cheapest premium in the marketplace, it is about offering a professional and reliable service that meets members’ needs,” he said.
Last week a tender was awarded to Jardine Lloyd Thompson (JLT) to lead the new service, part of a tripartite relationship between the FPA, JLT and a panel of underwriters.
FPA GM of Professionalism Deen Sanders told insuranceNEWS.com.au the underwriters should be announced this week. He says the mix is likely to be three or four domestic insurers and some offshore.
He says a number of factors led to the decision to offer a PI policy to members, including ASIC’s Regulatory Guide 126: Compensation and insurance arrangements for AFS licensees, requiring all financial services licensees to have adequate PI insurance by July 1.
“We were absolutely swamped by members to offer this policy,” Mr Sanders said. “Most people don’t think about acquiring PI insurance because it is not a core part of their business.
“We have heard some horror stories about premiums that have doubled and about exclusions in their policies.”
Mr Sanders says he will be surprised if most FPA members do not join the scheme over the next two years.
“This policy is not about offering the cheapest premium in the marketplace, it is about offering a professional and reliable service that meets members’ needs,” he said.